Start-Up Know How
Starting a new business is a big commitment and task; it can be overwhelming initially but rewarding once you have done it. We luckily live in a country where innovation and business are as fundamental and somewhat traditional as the turkey (unless you are Vegan) on the Thanksgiving dinner table. So, just like a turkey that requires proper seasoning, basing, and roasting at the right temperature, a Start-Up must have a concrete base and foundation before it can be a “seasoned” business.
Once your business is correctly set up, you can concentrate on what you do best and begin an incredible journey to success and financial freedom.
The reality is that a start-up needs to be concerned about financial failure. The safety net that allows you the space to create a successful endeavor is understanding and creating a strong Start-Up foundation. One that will set you up for success, not failure.
The goal of every Start-Up is “Profit”; however, the core belief of a Start-Up business is “Independence.” Successful businesses know these two and are not exclusive but inclusive of each other.
Profit and financial independence can be achieved through tax, business planning, and knowledge. We help you understand:
Licensing Requirements:
Whether you live in a small or big state, rural or a large city, each jurisdiction requires proper business registration and licensing. Failure to provide business information to these government entities carries a heavy cost. It will result in the closure of your business and fines that may be assessed to the business owner personally. So be diligent and follow the rules of the jurisdiction where your business is located; the cost outweighs the alternative.
Start-up Costs:
These are the expenses you may have paid personally before your business started or before you opened the door for business. Typically, legal fees to form your business, business licenses, fictitious business names, franchise fees, and professional fees associated with a Business Plan can be categorized as Start-up Costs. You must be diligent in figuring out your pre-opening expenses and planning your budget accordingly.
Legal and Insurance Requirements:
As a business owner, you must carry General Liability, Professional Liability (if you are in a Service Industry), and Workers’ Compensation Insurance (if you plan to have employees). If your business is engaged in a Service Industry, you should also provide your clients or customers with legal contracts to protect yourself and your business. In general, every business must also legally inform its customers of the Privacy Policy. A Privacy Policy is a statement or a legal document (in privacy law) that discloses some or all the ways a party (in this case, your business) gathers, uses, discloses, and manages a customer or client’s data and information digitally and on paper. It fulfills a legal requirement to protect a customer or client’s privacy.
Accounting and Payroll:
Every business should know where they are financially at least quarterly. A mistake typically made by a business owner is that they would only look at the bottom line or their bank account and incorrectly form an idea of how their business is doing. It is, therefore, essential to incorporate a solid accounting system to properly report each income and expense line item associated with running your business finances. This accounting system cannot be an old-fashioned legal-size general ledger paper or a notebook to keep track of the finances; instead, it must be software that can provide not only your present financial data but also make historical comparisons to your past financial data so that you can see where improvements or adjustments are needed. In terms of Payroll, assuming your business has employees, hiring a professional service to handle your payroll is highly recommended, as the IRS is not forgiving about payroll matters.
Tax Compliance:
The dreaded Tax Compliance is what every business does not look forward to, but it should. Failure to file tax returns or tax payments are two leading causes of business closure and a visit by your friendly tax agents. As a business owner, you must file and are responsible for paying your business taxes on time. Unfortunately, personal and business tax regulations have become even more complicated despite Congress’s effort to “simplify,” so hiring a licensed Tax Professional who keeps up to date on the recent tax law changes is something a business owner should seriously consider.